The country's front-ranking economists and business leaders have expressed mixed opinions on the government's move to offer fresh opportunity to formalise the undisclosed income.
The National Board of Revenue (NBR) recently said the government might offer yet another chance to formalise legal but untaxed money by paying penal tax in addition to normal tax.
Asked to give his comment on the move, renowned economist Prof Muzaffar Ahmed told the FE that the existing faulty system that helped generation of 'unlawful' income had necessitated the government to repeat such provision.
"Since there remains scope for generation of unlawful income in the society, the authorities have no option but to continue the provision for legalising the same," he said.
He also observed that the proposed provision for formalising untaxed money would be nothing but a follow-up of the measurers that were introduced on several occasions in the past.
Profession Muzaffar, who is also the Chairman of the Transparency International, Bangladesh, also said the continuation of such provision would be resulting in the generation of illegal or 'black' money in the society, which would ultimately encourage corrupt practices in future.
He, however, suggested taking necessary steps to help prevent the generation of illegal money instead of allowing people to legalise the same.
"There is an urgent need for checking all the existing sources, through which illegal money is generated in the society," said the economist.
Talking about the issue of 'legal income', the economist said the authorities should clearly define untaxed money while legalising it.
"A specific definition of legal or untaxed money is necessary before giving any opportunity to formalise it," Profession Muzaffar said.
On the other hand, President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Annisul Haq said the proposed provision for formalising undisclosed money would not benefit the businesses much if any high rate of panel tax is charged on it.
"We think, the country's business community will get little benefit out the proposed income formalisation provision if the government charge any panel tax on the same," the leader of the country's apex trade body told the FE.
He further said: "We wanted that the government to give the opportunity for formalisation of undisclosed money on easy conditions, paving the way for facilitating the country's investment growth."
Mr Annisul, however, said the government should not charge any panel tax on the undisclosed money of the same is invested especially in manufacturing and other productive sectors.
The FBCCI chief also urged the government not to impose any penal tax on legal yet untaxed money, aiming to help boost investment and create job opportunities.
The NBR, however, said it is planning to impose certain rate of penal tax on undisclosed money for the sake of ensuring fair justice to regular taxpayers.
